72-Year-Old Mumbai Man Loses ₹35 Crore in Four-Year Trading Scam

A 72-year-old man from Mumbai has reportedly lost ₹35 crore in a massive trading fraud that continued unnoticed for four years. Bharat Harakchand Shah, a resident of Matunga West, accused brokerage firm Globe Capital Market Limited of carrying out unauthorised trading through his wife's account and misleading him with fake profit statements.

Shah runs a low-cost guest house for cancer patients in Parel with his wife. He inherited a large share portfolio after his father’s death in 1984, but says he never traded due to lack of knowledge.

How the Fraud Began

In 2020, following a friend’s advice, Shah opened Demat and trading accounts for himself and his wife with the brokerage firm and transferred all inherited shares to them. Company representatives assured him that no extra investment would be needed and that his shares would be used as collateral for trading.

Two employees — Akshay Baria and Karan Siroya — were assigned to “guide” him. Soon, they began controlling the entire trading process by making daily calls, visiting his home, and even sending emails from their own laptops. Shah says he unknowingly shared OTPs and login access, allowing full control of his accounts.

Fake Profits, Real Losses

From 2020 to 2024, Shah received annual statements showing steady profits. He relied on these reports and never suspected wrongdoing. But in July 2024, the situation changed abruptly.

Shah received a call from the company's Risk Management Department claiming his and his wife's accounts had a debit balance of ₹35 crore, and the amount had to be paid immediately. Shocked, Shah rushed to the office, where he learned that continuous unauthorised trades, including circular trading, had led to huge losses. Shares worth crores had already been sold.

Under pressure, he sold his remaining shares and paid the entire ₹35 crore. Only afterwards, when he downloaded the official trading history from the company website, did he notice stark differences between the real records and the profit statements he had been emailed for four years.

He also discovered that the firm had received multiple notices from the NSE, all replied to in his name without his knowledge.

Case Registered, Investigation Underway

Calling it an “organised financial fraud,” Shah lodged an FIR at the Vanrai police station under IPC Sections 409 (Criminal Breach of Trust) and 420 (Cheating). The case has now been transferred to the Mumbai Police Economic Offences Wing (EOW) for detailed investigation.